Energy Minister John Peter Amewu has cautioned the West African Gas Pipeline Company Ltd (WAPCo) not to impose high tariffs on gas supplied to Ghana.
According to him, consumers will not accept unrealistic tariff due to the availability of other sources of power at lower prices.
Peter Amewu was speaking at the West African Committee of Energy Ministers meeting in Accra.
“If the delivered gas price is prohibitive, compared to the other alternative fuels, gas will become a hard sell. We, therefore, expect WAPCo the pipeline company to try not to assume that there is a captive market for them and that any rates charged will be accepted wholeheartedly,” he said.
WAPCo transports gas from Nigeria through the West African Pipeline to Ghana and other West African countries at the cost of $5 per standard cubic feet.
Mr Amewu claimed that the tariff proposal submitted by WAPCo in their tariff proposal consultation process is not competitive and Ghana as a country is proposing to pay $1 per standard cubic feet.
Peter Amewu advised the company to slow down in its quest to get back their investment.
“While I commend WAPCo for sustaining the business through thick and thin, I urge WAPCo to consider that recovery of their investment may not have to be rushed in the circumstances.”
Meanwhile, Chief Executive of the West African Power Company, Walter Perez declined to comment on the claim but expressed confidence that both parties will have a win-win agreement at the end of the meeting.
Ghana’s quest to build a petrochemical industry in the Western region creates another opportunity for both parties to agree on terms that are beneficial to all parties.